Here I show you 8 important points for those who begin to enter this immense world of cryptocurrencies, in a summarized and direct way.


1. How exactly do cryptocurrencies work and what is the technology behind them?

Cryptocurrencies are digital currencies that use cryptography to support and verify transactions, as well as to control the creation of new units. In technical terms, they are based on distributed ledger systems (DLT) called blockchain, which allow decentralized and secure verification of transactions on a network. Once a transaction is entered into the blockchain, it is virtually impossible to alter. Blockchain technology also offers transparency in the trail of each transaction on the network, which implies greater security and confidentiality in the management of information.


2. What is the difference between a cryptocurrency and a traditional currency issued by a central bank?

The main difference lies in its structure. A traditional currency is a form of currency in which its value is backed by trust in the central authority that issues it. On the other hand, cryptocurrencies are independent of any central entity and operate on a decentralized network, so their value is based on supply and demand in the markets and their use for the execution of transactions. Ultimately, cryptocurrencies are a digital alternative to forms of state currency, offering a payment and storage of value system that functions in a more autonomous and decentralized manner.
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Showing a wallet address can be risky because doing so is revealing critical and potentially private information. Wallets are used to store and transfer cryptocurrency and are protected by passwords and private encryption keys. A wallet address is used to receive cryptocurrency and is the only information accessible to the public. When showing a wallet address to anyone, several risks can arise, such as using that information to manipulate or trick the person into making a cryptocurrency transfer. Fraudsters may falsify transactions or reverse the sequence of transactions. Additionally, it could cause the person to transfer their funds to a different address that they themselves control, giving clues to hackers and anyone who may be interested in stealing the cryptocurrencies.

Although a wallet address does not provide all the information hackers need to access the wallet, it can be a piece of the puzzle they need to gain access. If a wallet address is shared publicly, all transaction history associated with that address is also exposed.

For all these reasons, it is essential to keep the wallet address private and not share it recklessly. If you ever need to share your public address, it is important to do so only with people you trust and only after you have properly verified them. You should always be careful when displaying your wallet and ensure that your passwords and private keys are protected and secured.

As I understand it and if my answer is incorrect, please correct me, a hardware wallet is a physical device that stores cryptographic keys used to access cryptocurrencies. It is considered to be the safest way to store cryptocurrencies compared to software wallets because of its offline storage and advanced security features.

The primary information that is stored in a hardware wallet is the private key. A private key is a unique secret code that is used to access and control cryptocurrencies. With the private key, users can sign transactions and make transfers from their cryptocurrency accounts. The private key is generated by the wallet when it is set up and is stored securely on the device.
Hardware wallets also store the public key, which is used to receive cryptocurrencies. The public key is similar to a bank account number, and other users can send cryptocurrencies to this address.

Additionally, most hardware wallets also have backup and recovery features that allow users to easily recover their private keys if the device is lost or damaged. The backup phrases are usually a series of words that are stored on a piece of paper or other physical medium and kept in a secure location.

Overall, a hardware wallet stores the critical cryptographic keys that enable the user to send and receive cryptocurrencies, and protects these cryptographic keys with advanced security measures, including offline storage and encryption.